Intermediate Accounting Volume 1, 7th Edition By Spiceland-Test Bank

Test Bank Offering for Intermediate Accounting Volume 1, 7th Edition By Spiceland

ISBN-10:0077647092 , ISBN-13:978-0077647094

Chapter 1

1. The primary aim of financial accounting is to convey valuable financial information to decision-makers within and outside the business entity.

True False

2. The Canadian Business Corporations Act requires all incorporated companies in Canada to abide by IFRS.

True False

3. Private companies in Canada have the option to select between IFRS or ASPE.

True False

4. Canada has adjusted its existing standards for public companies to align with IFRS, while the U.S has fully embraced IFRS.

True False

5. Using a disclosed accounting basis is permissible if a company’s financial statements are prepared solely for internal purposes.

True False

6. Solely publicly traded companies in Canada must embrace IFRS.

True False

7. Earnings quality is considered superior when a significant portion of a company’s earnings stem from its ongoing operations.

True False

8. Engaging in income tax deferral is prohibited in Canada.

True False

9. In Canada, income for tax and accounting intentions may differ.

True False

10. External recipients of a company’s financial statements may possess conflicting aims.

True False

11. In Canada, IFRS standards were essentially harmonized with Canadian GAAP.

True False

12. The functional currency of a company is invariably the currency utilized for presenting the financial statements.

True False

13. It is permissible for publicly traded Canadian companies to report using US GAAP.

True False

14. Within Canada, nearly all equity financing for both public and private entities is conducted via private placements.

True False

15. IFRS standards could be adjusted to permit a disclosed accounting basis (DBA).

True False

16. Privately owned, publicly accountable companies with a fiduciary duty are mandated to comply with IFRS.

True False

17. Mutual fund firms, even if privately owned, are deemed to have a fiduciary responsibility and hence must adhere to IFRS.

True False

18. Canadian companies must consistently present their financial outcomes in Canadian dollars.

True False

19. Canadian corporations are restricted from utilizing U.S. GAAP.

True False

20. A company’s functional currency is the currency predominantly used for its business dealings.

True False

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